Idaho Education Tax Credit

Take advantage of the Idaho Education Tax Credit!

IDAHO STATE TAX CREDIT FOR 2011

Donations to qualifying Idaho educational institutions like The College of Idaho are eligible for a 50% tax credit — a reduction in the actual tax you owe. If you itemize your taxes, a donation to the C of I will enable you to get income tax deductions on both your state and federal returns, plus a 50% Idaho income tax credit. For 2011 the allowed credit has been increased for both personal and business gifts.

  • Idaho individuals may take up to 50% of a gift of $1,000 (a tax credit of $500)
  • Idaho married couples may take up to 50% of a gift of $2,000 (a tax credit of $1,000)
  • Idaho corporations may take up to 50% of a gift of $10,000 (a tax credit of $5,000)

EXAMPLE

John and Sally Smith are an Idaho married couple who itemize their taxes. Together, their gross income is about $75,000 (which puts them in the 25% bracket). They decide to donate $1,891 to the Boone Fund at The College of Idaho in 2011.

Their contribution qualifies for:

  • A $472.75 federal income tax deduction; plus
  • A $147.50 Idaho income tax deduction; plus
  • The $945.50 Idaho Education tax credit.

Taking the deductions and credit together, the Smiths' $1891 gift to the C of I has a true out-of-pocket "cost" of only $325.25.

Please note that your tax benefit is dependent on your personal income level and filing status, and we urge you to consult your financial advisors to develop the best contribution plan for your personal circumstances.